Government to increase taxes and charges, say Fine Gael and Labour

Fine Gael and Labour have claimed the Government is planning further increases in taxes and charges in the wake of yesterday'…

Fine Gael and Labour have claimed the Government is planning further increases in taxes and charges in the wake of yesterday's announcement of a 12 per cent increase in motor tax.

An increase in the RTÉ licence fee is expected within ten days and there is speculation that Ministers may announce new unexpected measures shortly in order to improve the state of the public finances.

The Fine Gael Leader, Mr Enda Kenny TD yesterday called on the Taoiseach and the Minister for Finance to "state now whether the Government plans even more hikes in State charges".

He said that on the day before the Budget there was an increase in hospital charges. Immediately after the Budget came the increase in road tax.

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"Since the General Election, we have also suffered increases in ESB charges, bus and rail fares, college registration fees, VHI premia, the Drug Refund Scheme threshold. The consequences of cutbacks in the Estimates will mean further pressure for increased charges for water, refuse, parking and other local authority services.

Labour's environment spokesman, Mr Eamon Gilmore said the increase in motor tax was evidence of the Government's "Budget by instalments".

"The Government is clearly intent on announcing its cutbacks and hikes on a day-by-day basis. It was an increase in the drug refund threshold on Tuesday, the meanest Budget for years on Wednesday, the scrapping of the social housing scheme on Thursday and now a quite staggering increase in motor tax today. What is on the way next week?" Fine Gael's environment spokesman, Mr Bernard Allen said the car tax increase "will hit every household in the country and contribute to soaring inflation, which is set to reach the 5 per cent mark within months.